CIPS Level 2 Certificate: Stakeholder Relationships [L2M3] Practice Flashcards

Vocabulary flashcards covering stakeholder definitions, market factors, communication techniques, and conflict resolution based on the CIPS Level 2 Certificate [L2M3] core study guide.

Stakeholder

Anyone with an interest, or stake, in the organisation or project.

Market factors

Elements that influence the demand for, or the price of, a good or service.

Shareholders

An owner of shares in a company; they are the ultimate owners of the business.

Internal stakeholders

People, groups or organisations with an inside interest in an organisation, including shareholders and employees who own or work for the business.

External stakeholders

People, groups or organisations who don't belong to an organisation but are nevertheless impacted by it, or have an impact upon it.

Supply chain

A network of individuals, organisations, technology, activities and resources working together to make sure goods or services reach the end user.

Lean

A business methodology that aims to create more value with fewer resources.

Inventory

The stock of goods, materials or products.

Customer

The person who purchases and pays for (but doesn't necessarily use) a product or service.

Business-to-customer (B2C)

A transaction between a business and the end user of its product or service (e.g., an individual shopper).

Business-to-business (B2B)

A transaction between businesses (e.g., in the supply chain).

Consumer

An individual or organisation who pays an amount to consume goods or services (the final user).

Co-operative

A people-centred enterprise owned and run by and for their members, which either reinvests any profits or returns it to their members.

ROI (Return on Investment)

A measure of profitability that indicates whether a gain or loss has been generated compared with the initial cost.

Public sector organisations

Service organisations run by the government and usually funded by taxes.

Private sector organisations

Organisations run with the aim of making a profit.

Third-sector organisations (TSOs)

Not-for-profit, non-governmental organisations run with the aim of achieving social goals, such as charities or community groups.

Primary sector

The first stage of the production and manufacturing process (e.g., farming and the extraction of raw materials).

Secondary sector

The second stage of the production and manufacturing process, e.g., manufacturing industries.

Tertiary sector

The third stage of the production and manufacturing process, where a service is delivered in industries (e.g., banking, communications, and marketing).

Third-party logistics (3PL)

The use of third-party businesses to outsource part or all of an organisation's fulfilment, logistics, transport, warehousing or distribution.

Substitutes

Goods which, as a result of changed conditions, may replace each other in the market.

Perfect competition

A market structure where many companies are competing, each selling the same identical (homogenous) product.

Imperfect competition

A market structure where many companies are competing but each is selling a slightly different product.

Oligopoly

A market structure where a small number of competitors dominate the market (in the UK, a few companies accounting for more than $50\%$).

Duopoly

A market structure where two companies dominate all or nearly all of the market share of a good or service.

Monopoly

A situation in a market where one organisation controls the supply of goods or services and new entrants find it difficult to enter the market.

Economy of scale

The trend of cost per unit being reduced as output increases due to factors such as increased bargaining power.

Viral marketing

A method of marketing where consumers share information about a company's products or services via the Internet.

Brand loyalty

The tendency of consumers to continue buying the same brand of products or services rather than competing brands.

Competitive advantage

Putting an organisation in a strong position against their competition by offering better value than competitor businesses.

Verbal communications

Using the spoken or written word to convey information, for example face-to-face or on the phone, reports, e-mails or posters.

Non-verbal communications

Using pictures, facial expressions or body language to convey information.

ISO 9001

A document describing the requirements an organisation must fulfill to meet the ISO 9000 quality management standards.

Audit trail

A record, history or series of documents that provide evidence of a sequence of processes that led to an outcome.

Tuckman's stages of team development

The sequential stages of team formation: Forming, Storming, Norming, Performing, and Adjourning.

Conflict

A disagreement, or difference of opinions or principles.

Third party

Someone who is not one of the main people involved in a business agreement or legal case, often acting as an impartial mediator.

Thomas-Kilmann Conflict Mode Instrument

An approach to conflict resolution based on two dimensions (assertiveness and co-operativeness) with five modes: Competing, Accommodating, Avoiding, Collaborating, and Compromising.

CRM (Customer Relationship Management) system

A database used by the sales function to keep track of customers, contacts, and a record of transactions.

ERP (Enterprise Resource Planning)

A computer system that analyses current inventory, forecast demand, and expected delivery of new supplies to identify requirements from suppliers.